28 slides from Provident Financial Services's earnings presentation, Jul 24, 2025
Slide 1: Q2 2025 Results Presentation
Q2 2025 RESULTS PRESENTATION
Slide 2: Forward Looking Statements
Forward Looking Statements Certain statements contained herein are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such
Slide 3: Provident Bank; Building a Premier Banking Franchise
Provident Bank; Building a Premier Banking Franchise Company Overview Geographic Overview • Founded in 1839, longest tenured bank headquartered in New Jersey • 140 branches serving New Jersey, eastern Pennsylvania, and Orange, Queens, and Nassau Counties, New York • Full-service commercial & consume
Slide 4: Q2 2025 Financial Highlights
Q2 2025 Financial Highlights Key Metrics Highlights • Adjusted for a one-time write-down on a foreclosed property in the prior quarter, the Company's annualized adjusted returns on average assets, average equity and average tangible equity(1) were 1.19%, 10.76% and 16.79% for the quarter ended June
Slide 5: Stable Core Funding Base
Stable Core Funding Base DEPOSIT COMPOSITION June 30, 2025 (#039;s in thousands) Brokered 6/30/2025 3/31/2025 $ Change % Change deposits 4.6% Non-interest bearing deposits $ 3,716,096 $ 3,737,714 $ (21,618) -0.6% Non-interest Interest bearing core deposits 7,946,878 7,836,646 510,426 6.5% Certificates
Slide 6: Diversified Portfolio of Loans Held for Investment
Diversified Portfolio of Loans Held for Investment LOAN COMPOSITION June 30, 2025 (#039;s in thousands) 6/30/2025 3/31/2025 $ Change % Change Commercial Multi-family Mortgage loans: Construction Loans Loans Commercial $ 7,313,904 $ 7,295,651 $ 18,253 0.3% 4% 19% Multi-family 3,517,509 3,458,190 59,319
Slide 7: CRE Investment Portfolio by Property type
CRE Investment Portfolio by Property type Total CRE Investment Portfolio = $10.97 Billion* RESIDENTIAL HOTEL LAND 2.6% 1.2% SPECIAL USE 0.6% 4.9% Portfolio Characteristics OFFICE 7.6% 10 Largest CRE Loans 4.21% of CRE Investment Portfolio MULTI- FAMILY 10 Largest CRE Loans 2.38% of Total Loan Portfo
Slide 8: Multi-family Composition (NY and Rent Stabilized sectors)
Multi-family Composition (NY and Rent Stabilized sectors) Total NY Multi-family Loans = $479.7 Million Total multi-family loan portfolio: $3.57 Billion • Of the total, 91 Loans on multi-family properties in the five boroughs of NYC, aggregate outstanding $270.1 million, with an average loan size of
Slide 9: CRE Office Composition
CRE Office Composition Total CRE Office Portfolio = $839.1 million* • Medical Office: approx. 36% of total office portfolio. OFFICE - OUT OF MARKET PENNSYLVANIA 5% 10% OTHER NY 2% Maturity or Reprice by Year 2025 $266.8 M OTHER NY BOROUGHS 2026 158.4 M 9% 2027 157.3 M 2028 82.0 M MANHATTAN 2029 71.2
Slide 10: Loans by NAICS Sector – June 30, 2025
Loans by NAICS Sector – June 30, 2025 C & I – (Includes owner occupied) Finance and Insurance Retail Trade 6% 7% Manufacturing 10% 1. Accommodation and Food Services 2. Administrative and Support and Waste 13 Diversified Sectors Management and Remediation Services 29% 3. Agriculture, Forestry, Fishi
Slide 11: Strong Credit Metrics
Strong Credit Metrics Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 Total allowance to total loans 1.02% 1.04% 1.02% 1.00% 0.98% Total non-performing loans to total loans held for investment 0.47% 0.53% 0.56% 0.36% 0.37% 0.41% 0.45% 0.44% Total non-performing assets as a 0.34% 0.33% percentage of total assets 0.14%
Slide 12: Investment Portfolio
Investment Portfolio Total Investment Portfolio = $3.33 Billion Agency CMBS Agency Notes - Fixed 4.89% Student Loan Pools 0.45% • As of June 30, 2025, the portfolio had a modified 1.39% U.S. Treasury Notes Municipal Bonds 9.97% duration of 4.3 years and weighted average life of 12.77% Corporate Note
Slide 13: Net Interest Margin Analysis
Net Interest Margin Analysis Interest-Bearing Liabilities Asset Yields Securities Net Loans Total interest-earning assets Total Deposits Total Borrowings Total Interest-Bearing Liabilities 3.83% 3.94% 6.05% 6.21% 3.73% 3.76% 5.99% 5.95% 6.01% 3.64% 3.19% 5.84% 3.09% 3.03% 5.67% 5.66% 5.63% 5.68% 2.9
Slide 14: Emphasis on Fee Income
Emphasis on Fee Income Non-Interest Income $ in thousands $30,000 $25,000 $20,000 $15,000 $10,000 $5,000 $0 Q2 Q1 24 24 Q3Q2 24 24 Q4 24 Q3 24 Q1Q4 25 24 Q2 Q1 25 25 Fees $ 8,699 $ 9,816 $ 9,687 $ 9,655 $ 10,736 Wealth management income 7,769 7,620 7,655 7,328 6,948 Insurance agency income 4,488 3,6
Slide 15: Focus on Wealth Management Business
Focus on Wealth Management Business 2025 YTD Revenue Advisory $ 12,853,026 Trust & Estate Trust & Estate $ 1,102,721 8% Tax $ 319,765 Tax Interest Income $ 376,745 * 2% Total $ 14,652,257 Advisory Private 88% Banking 3% $4.1 Billion AUM For 1,050 family relationships NYSE: PFS * Represents interest
Slide 16: Focus on Wealth Management Business
Focus on Wealth Management Business AVERAGE EBITDA & NET INCOME CLIENT SIZE EBITDA (YTD June 30, 2025) $ 5,772,000 Net Income (YTD June 30, 2025) $ 4,014,000 CROSSOVER PROVIDENT/BEACON $3,900,000 (HOW MANY PROVIDENT CUSTOMERS ARE BEACON CLIENTS) As of June 30, 2025, based on AUM of $4.1B for 1,050 f
Slide 17: Provident Protection Plus, Inc.
Provident Protection Plus, Inc. Insurance Services Net Income Before Tax • Provident Protection Plus, Inc. provides ($ in thousands) insurance agency services including business, personal and employee benefits insurance products. $2,878 • The insurance agency’s primary source of revenue is commissio
Slide 18: Strong Core Performance
Strong Core Performance Core PTPP ROAA Core PTPP ROAE Core PTPP ROATE (Annualized Core PTPP earnings/average (Annualized Core net income/average (Annualized Core net income/average tangible assets) stockholders' equity) stockholders' equity) 21.18% 21.26% 14.88% 14.63% 1.64% 1.61% 20.31% 13.91% 19.7
Slide 19: CRE to Total Risk-Based Capital
CRE to Total Risk-Based Capital Guideline is 300% of Regulatory Capital 500.00% 468.4% 458.0% 460.2% 449.6% 443.7% 450.00% 400.00% 350.00% 300.00% 250.00% 200.00% 150.00% 100.00% 50.00% 0.00% 06/30/24 09/30/24 12/31/2024 3/31/2025 6/30/2025 NYSE: PFS 20
Slide 20: 2025 Guidance
2025 Guidance Loans • Remainder of 2025: 5% growth (+/- 2% due to trade/geopolitical policy uncertainty) Deposits • Remainder of 2025: 1-3% growth • Remainder of 2025: Balances expected to fluctuate based on loan, deposit and securities Borrowings cash flows Net Interest Margin • Remainder of 2025:
Slide 21: Appendix
APPENDIX
Slide 22: CRE Investment Portfolio by Property Type
CRE Investment Portfolio by Property Type* As of 06/30/25 ($ in thousands) $ % PROPERTY TYPE COUNT OUTSTANDING OUTSTANDING WARR MULTI 1,072 3,567,612 32.51% 3.42 RET 899 2,587,228 23.58% 3.41 INDUS 561 2,052,840 18.71% 3.47 MIXED 713 908,080 8.28% 3.68 OFF 434 839,133 7.65% 3.73 SUP 212 537,642 4.90
Slide 23: Loans by NAICS Sector – 06/30/25
Loans by NAICS Sector – 06/30/25 C & I – (Includes owner occupied)* NAIC Industry Code Loan Count Exposure ($) 62: Health Care and Social Assistance 719 $1,085,200,878 53: Real Estate and Rental and Leasing 1,262 $564,796,510 81: Other Services (except Public Administration) 797 $417,796,780 42: Who
Slide 24: Loans by NAICS Sector – 06/30/25
Loans by NAICS Sector – 06/30/25 Construction NAICS Industry Code Loan Count Exposure ($) Balance ($) Real Estate and Rental and Leasing 74 948,226,867.76 616,402,208.94 Construction 29 83,773,132.21 49,650,222.52 Health Care and Social Assistance 3 54,048,742.84 41,801,280.84 Accommodation and Food
Slide 25: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Adjusted Return on Average Assets, Equity and Tangible Equity Three Months Ended June 30, March 31, June 30, 2025 2025 2024 Net Income $ 71,981 $ 64,029 $ (11,485) Write-down on ORE Property - 2,
Slide 26: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures Q2 2024 Q3 2024 Q4 2024 Q1 2025 Q2 2025 Core PTPP earnings: Net Income $ (11,485) $ 46,405 $ 48,524 $ 64,028 $ 71,981 Add: provision for credit losses 69,705 9,299 8,880 638 (2,888) Add: income tax expense (9,833) 18,850 14,185 27,825 30,462 Add:
Slide 27: Reconciliation of GAAP to Non-GAAP Financial Measures
Reconciliation of GAAP to Non-GAAP Financial Measures ($ in thousands, except per share data) Annualized Adjusted Non-Interest Expense to Average Assets Three Months Ended June 30, 2025 Reported non-interest expense $ 114,614 Adjustments to non-interest expense: Write-down on ORE property - Merger-r
Slide 28: Q2 2025 Results Presentation
Q2 2025 RESULTS PRESENTATION